ML19259D235
| ML19259D235 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 10/10/1979 |
| From: | Merrill D PUBLIC SERVICE CO. OF NEW HAMPSHIRE |
| To: | Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML19259D230 | List: |
| References | |
| NUDOCS 7910170414 | |
| Download: ML19259D235 (42) | |
Text
-
. n e
ILJ PUBUC SERVICE FfhA[h Companyof NewHampshir e October 10, 1979 United States Nuclear Regulatory Commission Directorate of Licensing Office of Regulation Washington, D. C. 20045 Attention: Directar Re: Supplement No. 3 to Amendment 40 to License Application Dated March 30, 1973 (Docket Nos.
50 443 & 50-444) and Request for Partial Transfer of Construction Permits Nos.
CPPR-135 and CPPR-136 s
Gentlemen:
Pursuant to the Atomic Energy Act of 1954, as amended, and the Commission's Rules and Regulations thereunder, Public Service Company of New Hampshire (PSCo), on behalf of itself and the other licensees named in the above Construction Per-mits, hereby further supplements Amendment 40 to the above License Application as filed on May 16, 1979 To supplement the information heretofore supplied and in further support of the request for partial transfer, the Applicants hereby supply the following information:
A. Supporting Material Since the filing of Supplement No. 1 to Amendment 40 to the License Application in June, 1979, there have been various developments with respect to the requested modificatic:m
_l,- ((
s, 7910170
e P00RORGNAL and partial transfers of. the Construction Permits which affect the pending Request:
- 1. On July 19, 1979, the Vermont Public Service Board issued an Opinion relating to the proposed acquisitions by Central Vermont Public Service Corporation (CV) and Green Mountain Power Corporation (GMPC) which approved the transac-tions subject to certain conditions (copy filed herewith as Attachment 1 hereto). As a result, CV has indicated that f, cannot proceed with the acquisition until the Opinion is revised and GMPC has requested clarification of the Opinion; in turn, the New Hampshire Public Utilities Commission (MHPUC) issued an Order on September 20, 1979 (copy filed under letter dated September 27, 1979) which, inter alia, suspended its approval of the transaction with CV. As of the date hereof, it is not certain whether the proposed transactions with CV and GMFC will be consummated, but the Applicants still request approval of the financial qualifications of CV and GMPC to acquire their proposed increased interests.
- 2. By Orders dated July 27, 1979 and August 10~, 1979 (copies filed under letters dated July 31, 1979 and August 15, 1979), the NHPUC approved the 225 reduction of interest by PSCo. Subsequently, in light of information appearing in the media, the NHPUC by Order dated September 20, 1979 (see supra) reopened the proceeding and set a further hearing for October 15, 1979 to receive further testimony as to the status of the trans-action.
- 3. On l' ' n 'a l u r ^ h , 19'0, ""- "or *re " mi^*no' Wholesale Electric Company (MMWEC) notified PSCo that its 11 ~
l JJ
9 constituent members had'not accepted commitments for the full interest in the Seabrook Project which MMWEC had originally accepted under the Seventh Amendment. Therefore, MMWEC will have to reduce its additional participation to an amount pre-sently estimate' to be about 6.0%. MMWEC has previously filed in this docket material demonstrating its financial qualifica-tions to acquire as much as 13.8'7446% additionel interest in
- the Seabrook Project. Since it is not now known what interest MMWEC will actually acquire, the Applicants request approval of MMWEC's financial qualifications to acquire up to an additional 13.87446%. . .
- 4. As a result of the potential changes described above, PSCo believes that approximately 10% out of the 22% Ownership Share it tras attempting to divest may be declined by the original subscribers. Therefore, PSCo intends (a) to reoffer that Owner-ship Share to other utilities on substantially the same terms as previously offered (see Offering Letuer, Attachment 2 hereto) and (b) to enter into a Tenth Amendment to the Joint Ownership Agreement (see Attachment 3 hereto) with other Participants which provides for the implementation of the presently accepted adjustments which aggregate 12% as soon as the conditions pre-cedent are met and the inclusion of additional transfers of part or all of the remaining 10% as soon as requisite regulatory approvals have been obtained. The Tenth Amendment provides that the Original Transferees, which will be acquiring 12%, will during the Adjustment Period assume all cost otherwise attribut-able to PSCo until their agsregate inve n...unt reaenus a._ m, ,.x-1' ' '
8 - J
priate level and that Additional Transferees, if any, will during subsequent Adjust 6ent Periods participate in such assumption of PSCo costs to the extent of their increased interests.
PSCo 5 If only the Original Transferees participate, would remain obligated to finance about 38% of the Seabrook Project after the end of the Adjustment Period; if Additional Transferees participate, PSCo's ultimate interest and corres-
- ponding obligations could be reduced to as low as the 28%
previously contemplated. Enclosed herewith as Attachment 4 hereto is a Source of Funds Schedule prepared by PSCo on the assumption it ultimately remains obligated for 38% of the Seabrook Proj ect.
- 6. Enclosed herewith are twenty-five copies of revised pages for Part I of the " General and Financial Information" section of the License Application to reflect the foregoing information.
B. Reauested Modifications of Construction Permits On the basis of the materia.' herewith and heretofore filed in connection with Amendment No. 40 to the License Ap-plication, the Applicants respectfully request approval of the modifications and partial transfers of the Construction Permits up to the amounts originally requested in Amendment No. 40.
Applicants recognize that the original request included the acquisitions by CV and GMPC and an acquisition by MMWEC signi-ficantly larger than that presently contemplated to be consun-mated by the Tenth Amendment. However, the Applicants submit
- j. , n, t . . ,
that each of those entities has demonstrated its financial qualifications to acquire such interests and, since it is conceivable that one er more of then might become an Additional Transferee as contemplated by the Tenth Amendment, it would avoid duplicative reviews by the Commission Staff to approve such acquisition on the present record. The Applicants agree to keep the Commission informed as to the status of the trans-actions with the Initial Transferees and the above three enti-ties in particular. In addition, the Applicants agree to file a further amendment to the License Application as soon as any Additional Transferees become known in response to the current Offering Letter.
C. General This Supplement No. 3 to Amendment 40 (three signed origi-nals, under oath, and twenty -two copies) is being submitted by PSCo on behalf of all the current participants in the project.
Copies of the Appointment of Agent forms authorizing PSCo to act on behalf of the participants have previously been filed.
Respectfvily submi'tted ,
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE By / 97Llh D. :i . Ierrill Executive Vice President
CO :::0:;'JEALTH OF I: ASS ACHUS TTS COU:!TY OF SUFFOLM
/
Personally appeared before me this / day of October, 1979, D. M. Merrill, who being duly sviorn, did state that he is Executive Vice President of Public Service Company of :lew Hampshire, an applicant herein, that he is duly authorised to execute and file the foregoing supplement in the name and on behalf of Public Service Company of :lew Hampshire, and that the statementa in said supplement are true to the best of his knowledge and belief.
~ -
y
--( f--.,/ - ~ "d-
. ~ .
!!otary Public ~'
Tli Z ' V', 3 F FE , ..
i r, IMY h:. .
My Commission Expires : .' ?3 9 #1 *' " N ek
. o
_6_
i .
Attachment 1
. . E.'. /,l
- y ,.
- ' ti
~
L STATC OF VEIVKIU l s PU13LIC SERVICC BOAPD I
i j In the, Fhtter of the Purchase of I -
Certain Omership Interests in the 1 Muclear Units at Seabrook, New !!arpshire X I
i
! OPINIG1 I
At issue is the purchase i.n Scabrook Units I and II of an i additional one percent interest (23 megawatts) by Central Vermont Public Service Corporation (CVPSC) for $27,000,000, and the trade by Green !buntain Poser Corporation (GK) of a 15 III conmit:nent in the Sears Island coal plant^
i l
I with a projected cost of $21,000,000, for a one percent, or 23 !M, interest
~l i in the Seabrook units, at a projected cost of $27,000,000.
Public Service Ccmpany of tiew llanpshire (PSMI) is offering both ccupanies an unusual arrangmunt whereby the price of their interests wpuld not include accrued allosance for funds used during construction (AFUCC) l payments which PSNil has incurred during the crior years in this project. This feature makes the price less than it would normally be for an equivalent j interest in these units. In addition to receiving the 15-:M Sears Island interest, PSNII also has stated in a letter of intent that it will btry back frcm CVPSC any power excess to CVPSC's needs fram this one percent Seabrook cunership during the first seven years that Seabrook I is on line.
Doth CVPSC and GTC presently have nuclear conmit:nents. GPC has an canership interest in Vermont Yankee and CVPSC has an ownership interest in a atmber of nuclear plants (see Note 1, p. 8 ) . Therefore, the isste raised by these proposed acquisitions is not that of a new venture into nuclear plants for either ccnpany, but rather the wisdom of adding these investnnnts to their present comtitrnents.
3 , ,,-
3 l .. , J a
11
i 2
i liealth and safety issues related to nuclear poaer are presently
) tr. der intensiva revica by the reneny Cctmissicn as an outgroath of the Three i
l title Island accident. Any restrictions or modificaticas irpcsed as a result l
l of that CccttissicWs report or as a result of Congressicnal or other Federal actions ray be inposed upcn all nuclear plants either presently in service, under construction, or licensed in the future. These issues bear on the
, advisability of develcping future nuclear plants. Also, concern cver the j issues may well affect the prospects of financing nuclear plant construction.
The Public Service Bcord (PSD) has analyzed with care the submissions and testinony of CVPSC and GMPC, of Professor Peter Williarson, j consultant to the roard, and of other interested groups and individuals who I
h subnitted doctrents, letters, and gave oral test _ irony at our thres public
- 1
!! m2ctings held on July 9,11 and 12,1979, in Ibntp21ier. We received and ll q read hundreds of letters, cards, petitions and docuaunts in addition to the 0
i nuterial subnitted by the cogaanies.
I Among the r.uny issues studied and evaluated by the Board, s.u have i concluded that the follo.fing are of particular concern:
- 1. We believe that a projection of groath in peak load of 2.l' percent for CVIC, and 3 percent for GTC is reascnable, when extended over the nost decade. Both greath rates are significantly I
less than those projected by the respective ccnpanies, but we
,l believe tlut increased prcrotion of efficiency and conservation should achieve these rates despite projected population and l
, industrial grcwth.
t If these relatively modest rates of growth are achieved, there is a real possibility that both companies will need 4 - , 4
-. e e
t
L ,
4 d additional generating capacity within ten years and, in the cace l d
of CVPSC, pessibly in as short a period as fi'.t yean.. depending cn the I
outca n of negotiaticos with the P&aer 3.uthority of the ' tate of h i;cw York to continue our p: esent contracts bayend mid-1985.
Ue are concerned by delays and possible canec11atic,n of l.
coal-fired and nuclcar units tiithin the .;ca England Po.ler Pool j i
system and by the time rcquired to develop new forrs of 92ncratica i
q in this state. We expect that sr.all hydroelectric generation will 4 l 3
be caveltood in the coming years, Lut it would not be a stistitute 1 l j for fim bese load pc.ser. Sirilarly, the availability of poser s,
from wood, wind, or solar generation is not sufficiently sure to f be available in large quantities for us to count cn it for reetina the increased load in the next decade. (Ue note the progress of 1
3 the Durlington Electric Depart: rent wcod-burning plant, but, since l
no sutrcittal has been raade to this Board, we feel we are not in a position to assess the likelibcod that that plant will core on line within five to ten years or that it will turnish significant i
amounts of powr to GPC and CVPSC.)
~
- 2. The most likely available source for purchasing additional pcuer to moet the shortfalls in the five to ten year future seerrs 5
l to lie in buying poser frcra oil-fired plants presently in cperatica I
such as Canal and :liddletoan. Ilowever, oil-fired generation has i
1 becau, and will continue to be, a very expansive, possibly P
unavailable, source of electric energy. The enornous dislocations
} cf the world oil market virtually foreclose oil as a generation i
source on v.hich we can rely heavily in the future.
- j. . ._
l 1
. .. i ,'
!j ,
~
4
/
I, i
- 3. Irss certain, but attractitu opportunities may be the purchase of pwer fran liydro-Quebec and Ontario liydro. Thesc
- negotiaticas will be pursued, and a cost /bencfit analysis of large trrnsmission lines through Venxr.t to sect.re poser fran these sources will prestrebly take place over the coming years.
, 4. CVPSC and G2C are relatively small electric coganics.
I
! I'or instance, Northeast Utilities in Connecticut is eleven tires the size of CVPSC and eighteen times the size of G'PC.
i Boston Edison is five and a half ti:res the size of CVPSC t Td nine times the size of GTC. PSNH is two and a half tims the size of CVPSC and alnest four and a half tims the size of G9C.
1 In view of the size and financial base of GTC and CWSC, we p, .believe that a co nitment in the order of $27,000,000 each poses serious d
.j risss to the financial integrity of both companics. CVPSC's total Il
! capitalization as of Fay 31, 1979, including short-term debt, was $151,446,849:
I j
its net worth (total equity) is $82,83,750; its net plant is worth l $81,485,757. In the case of G9C, the Corpany's total capitalization, j
I including short-term debt, as of thy 31, 1979, is $70,728,809; its net i
{ korth is $29,629,609, and its not plant is $45,909,649.
The addition of a one percent interest in Seabrook by each cagany would produce the follcwing results:
'lhe one percent interest for CVPSC is equivalent to 18 percent of its total capitalization; to 33 percent I
,i of its net worth; and, at the time the units cane on I '
j line (asstning no other plant additions) they will add 33 percent to its net plant. '
1<- .-
J l <
R
} l d
In. the case of G TC, titis investrcnt is cquivalent to 38 percent of the CaTany's total ca :itali::ation; to j 91 percent of its not worth, and the cenplete units i
would add 59 percent to its not plant, asstnting no other i
l addition.
Aside frcm the financial inplications of the cc=ti'munt of fu .ds of l this nugnitufa fcr these snull cor. panics, there re uins the additional ccncern l that the ccar.titmant could foreclose the conpanies frcm being able to take t
adv tntage of other opportunitics that ray develop in the year ahead. (As
[o noted above, these opportunitics are at present in only the ger:ninal stage.)
The Board is concerned that these units ray not ccrne on line as
] presently scheduled or possibly that they will not be put into operation at i
i all. We have a simstantial concern with the risk of increases in the costs
- of pcwor resulting fram increases in constructica costs for whatever rhasons I
I fi encountered. There ruy be delays and/or new regulatory and safety l
'l'
,l n regttirerents, as for instance, those that ray result frcm the Three Mile l'
d Island accident, and consequent Congressional and Federal agency restrictions i
! which would be irposed on new and existing nuclear plants.
l
- Hcuever, we have weighed the 6 bility of PSNII to raise capital, the i
enthusiasm of other utilities to purchase shares in the Seabrook units a .d f tne apparent desire of the Mcw llanpshire authoritica to see the mits I
- through to conpletion, and have concluded that their conpletion is likel'j.
g .~ s j t.'onetheless, the Board will not permit the financial risks f associated with these one percent acquisicions to be bome by Vermont rate-1 i
payers. Pather, Vertuit utilities who have made the judgment that they are strong enough to buy into these units r.'ast bear the risk and costs of 3...
- ~ ^'
1 fl e s
~
] construction, including ccrpliance with state and Federal regulatory n >
j require::ents, withrut resorting to a pass-through of charges to the rate-i payers by neans of ccnstruction work in progress (CWIP) or equivalent charges.
k j Accordingly, the Board requires G'PC and CVPSC to adhere to the folicwing conditions, should either or both of these ccqnnies elect to go ij a forward with the proposed investr.ents in the Seabrcok units.
i
- 1. Investrents, carrying charges and financial risk nust 1'
te asstrmd solely by the shareholders of the purchasing I
utilities. Investments, carr/ing charges and/or financial l'
, risk associated with these investnents cannot be charged to the ratepayers by means of construction work in progress or l
j equivalent charges, nor in any other manner, direct or indirect.
], hhen the Seabrook units are used and useful, i.e. , on line
); and generating electricity, the cost associated with these t
one percent acquisitions may be considered for rate-rcaking h purposes.
a
- 2. CTC must use its best efforts to obtain from PSim i
i the same buy-back agreement of excess Imer as is described 1
fr in the letter of intent dated June 15, 1979, between CVPSC and q
h
] PSNil.
- 3. CVPSC will advise this Board of its opinion of the status I
of the NEPOOL units Pilgrim II and bbntague I and II and the status of its interests in those units, with particular regard to divestiture of those interests. .
y4 - - , . -
~ >
I i
- ll
. : i
,' ; 7 I
i
- With rea
- cct. to the individual coqxciien under cc is1deration, the t
i l Eoa.d wishes to share the folloaing viu s: t I
- 1. CVPSC is too heavily ccamitted to nuclear pc.:er (see 1 Sote 1 beloa). Therefore, the Peard thinks it would b2 pndnt i
j for the Ccrpany to use its bus offorts to sell its interests i: Pilgrira II and I'cataque I anti II.
- 2. CVPSC is to be comended for its offorts in conservation, i l I
,i
- particularly with lespect to its residential custcrers with I i
I seasonal rates, on peak /off peak rates, storage heat, and ripple j l
y ccn trol . All of these strategies have contributed to a icaer i
I q groath rate. It is essentia' that CVPSC's ain stricl, conrnrcial, j lij and large tax-supported users receive smilar at utica cnd be n
offered cyually offcctive opportunities for reducing peak groath o
h,; and i: proving load factors. The ripple control systctn should i I
4 h oc widened, and all efforts at efficiency should be intensified. .
6 6
li k 3. It is ensential Ulat CPC initiate rato design and l i
I l
other conservation ncasures which will substantially reduce its
!, peak load groath, improve its load runagement, and encourage j
conservation and efficiency in all classes of ratepayers.
l 4.
The Board will e>occt further infonnation on GTC's investrent in the Ibssachusetts Municipal knolesale Electric Cooperative cycling unit, pr.ticularly as to this unit's g capability and likelihcod of being operated en fuel other than oil, such as synthetic feels and natural cas.
In stmnary, the Board has decided the t the prcposed Ee brock t
investnents by both CVPSC and GIPC are conditionally approved only if i
s ~
4 , , -
. v
- C ' *; ,l 8 ll.
ca: cini cg in a 1.nnn. r which would iJnpose no financial riuk and/or pass-I t
i through of cbsges to Vennent ratepayers until such tim as the plants are I
used and useful, as previously defined. -
Should either or both CWSC and GTC elect to go foniard with the I
i 1;, proposed m mrtments, they may do so within the conditienn and constraints f;' herein above set forth.
( D7ED at ibntpelier, Verr.cnt, t,his 19th day of J,uly,1979.
- l
/ /,'
/
s,*/Y;.
-7 f ?fi ) ) STIC CF f - k- ) ) VERnc O'M ,1, .f: L ([%-- )
/ ) PUBLIC S-'RVICE 3
// *& ',
-7A>>h[5
/ ,/
m
) ECidiD II .
,f i
h a Il:bte 1: ti G PC and CVPSC's Present Interest in Nuclear Plants
'l 1
1 CVPSC M1 Venent Yankee 161 i ihve Yankee 6 Connecticut Yankee 12 Maine Yankee 15 Seabrook I and II 37 Pilgrim II 20 tiillstone III 20 tbntague I and II 40 T311 CTC l Ven ont Yankee 93.2 - i. l
- 3. < < . ,
i
u to , Attachment 2 JL] PUBLIC SERVICE i Companyof New Hampshir e October 11, 1979 To: Seabrook Participants, New Hampshire Wholesale Custc aers of Public Service Co=pany of New Hampshire, and Certain Other New England Utilities In March, 1979, Public Service Company of New Hampshire ("PSNH") offered to certain of the Seabrook Participants a 22% Ownership Share in the Seabrook nuclear electric generating Units Nos. 1 and 2 (the " March Offer"). This offer was accepted by Participants in various percentages aggregating the full 22%, subject to receipt of certain regulatory and other approvals. Massachusetts Municipal Wholesale Electric Company ("MMWEC") accepted 13.87446% but nas been able to co=mit for approximately 6.0% only. Central Vermont Public Service Corporation and Green Mounta_a Power Corporation each accepted 1%, but the Vermont Public Service Board's approval of these acquisitions contains conditions which the Vermont utilities appear to have concluded prevent them from acquiring these additional percentages. Consequently, PSNH now has acceptances under the March Offer for a 12% Ownership Share, leaving a 10% Ownership Share available for other utilities in order to bring the total acceptances back up to 22%. By this letter PSNH is offering Ownership Shares aggregating 10% upon the terms and conditions hereinafter described. If the Vermont utilities should decide, notwithstanding the conditions in the Public Service Board's approval, to go forward with the acquisition of part or all of the 2% accepted by them in response to the March Offer, the Ownership Share offered hereby will be reduced accordingly. If HMWEC's finally-accepted percantage is more or less than the amount indicated above, the Ownership Share of fered hereby will be appropriately adjusted. The aggregate amoun~ offered by PSNH in the March Offer and this offer will not exceed 22%. If acceptances are received for more than the amount so offered, the acceptances will be appropriately apportioned by PSNH in such manner as it judges will most expeditiously consummate the transactions contemplated hereby. Like the March Offer, this offer contemplates an arrangement under which accepting offerees will increase their Ownership Shares over an Adjustment Period rather than purchase through a lump-sum payment at the outset. The Adjustment Period for this offer will start not earlier than the commencement of the Adjustment Period for Ownership Shares being taken under the March Offer; and it is now anticipated that the requisite approvals will be received and the Adjustment Period commenced for the March Offer by March,1980. Thereafter the Adjustment Period for this offer will start for each accepting offeree when the regulatory and other approvals required by that accepting offeree have been received,
- J
.. e.,
_2- October 11, 1979 without regard to whether approvals required for other utilities accepting this offer have been received and their Adjustment Pariods commenced. Coasequcntly, commencement of the increase in Ownership Shares of accepting offerees under this offer may occur at different times and their Adjust-ment Periods may run for different times. If an Adjustment Period has not begun with respect to an accepting offeree under this offer by January 1, 1981, either that offeree or PSNH may elect to terminate such offeree's accepted offer (but such termination will not affect any other Adjustment Period of any accepting offeree). It is not a condition to tais offer that all or any specific portion of the Ownership Share offered hereby be accepted although it is a condition to the commencement of the Adjustment Period with respect to this offer that the Adjustment F riod for the March Offer shall have com=enced. During the Adjustment Period the costs of the Seabrook Units which would otherwise be applicable under the Agreement For Joint Ownership, Construction and Operation of New Hacpshire Nuclear Units (the " Agreement") to PSNH's entire Ownership Share shall accrue to the account of and be paid by the accepting offerees. Assuming several Adjustment Periods (which may iaclude the Adjustment Period applicable to the accepting offarees under the March Offer) are running simultaneously, each accepting offeree whose Adjustment Period is running will bear a share of such costs in the percentage that its accepted Ownership Share bears to the aggregate accepted Ownership Shares of all accepting offeraes whose Adjustment Periods are then running. At any time during the Adjustment Period an accepting offeree's then Ownership Share in the Units will be that percentage which its investment in the Units is to the aggregate investment of all Participants in the Units. The Adjustment Period for each accepting offeree will continue until its Ownership Share in the Units is equal to the Ownership Share accepted by it (or in the case of existing Participants, has been increased by the Ownership Share so accepted). The foregoing provisions shall be embodied in a Tenth Amendment to the Agreement, a copy of which is enclosed herewith. In the case of each present Participant, execution copies are enclosed, and such Participant is requested to promptly execute and return both copies to PSNH. To accept this offer, each accepting offeree should execute and deliver (by certified or registered mail or by personal delivery) a letter in the applicable form attached hereto to Public Service Company of New Hampshire (Attention: W. C. Tallman, President), P. O. Box 330 (1000 Elm Street), Manchester, New Hampshire 03105, not later than 4:00 p.m., Eastern Daylight Saving Time, on October 26, 1979. Each present Participant should use Exhibit 1 attached hereto indicating whether it wishes to accept this otfer and in what amount. Even if a present Participant elects not to accept any of the Ownership Share offered hereby, it is requested to execute and return Exhibit 1, thereby waiving any right of first refusal it may have under the Agreement with respect to this offer, and to execute and return the Tenth Amendment. t
October 11, 1979 Accepting offerees which are not now Participants should use Exhibit 2 atached hereto. PSNH reserves the right to determine whether any acceptance receivad in response to this offer sufficiently meets the requirements of the offer. By accepting, the accepting offeree agrees to acquire the Ownership Share specified in its acceptance, subject to possible reduction in the event of an oversubscription or exercise of first refusal rights, all upon the terms and conditions described herein. Sincerely, W C. Tallman President Attachments j 4 - ,n.
! _s
EXHIBIT 1 COMMITMENT TO PURCHASE ADDITIONAL OWNERSHIP SHARE . , (Participant) (Date) Public Service Company of New Hampshire Post Of fice Box 330 (1000 Elm Street) Manchester, New Hampshire 03105 Attention: W. C. Tallman, President Gentlemen: The undersigned hereby agrees to acquire an additional % Ownership Share, in accordance with the Offer dated October 11, 1979, from Public Service Company of New Hampshire, in Seabrook Units Nos. 1 and 2 (the " Units"). It is understood that the amount of said additional Ownership Share is subject to adjust-ment in accordance with the terms of the Offer. This agreement is subject to the obtaining of all necessary regulatory approvals; and PSNH and the undersigned shall use their best efforts to pursue, obtain and assure the continued validity of such approvals which apply to their respective rights and obligations hereunder. The undersigned agrees that it will execute and deliver a Tenth Amendment to the Seabrook Joint Ownership Agreement as contemplated by the Offer. Upon the Effective Date (as defined in said Tenth Amendment) with respect to the additional Ownership Share specified above of the undersigned, the under-signed by causing this agreement to be signed by its authorized officer and affixing its corporate seal hereto agrees with you and the other Participants that it shall hereby become subject to additional obligations and entitled to additional rights as a Participant under the Seabrook Joint Ownership Agree =ent to the extent of its additional Ownership Share. The undersigned hereby waives any right it has pursuant to paragraph 23 of the Seabrook Joint Ownership Agreement to purchase all or any part of the present Ownership Share of Public Service Company of New Ha=pshire offered pursuant to said Offer, and waives the notice provisions of said paragraph 23 with respect thereto. (Buyer's Name) Witness: By (Seal) Its The undersigned declines the offer but agrees to execute and deliver a Tenth Amendment to the Seabrook Joint Ownership Agreement as contemplated by the Offer. The undersigned hereby waives any right it has pursuant to paragraph 23 of the Seabrook Joint Ownership Agreement to purchase all or any part of the present Ownership Share of Public Service Company of New Hampshire offered pursuant to said Offer, and waives the notice provisions of said paragraph 23 with respect thereto. (Participant's Name) By Its
, - n .
4 v .0
EXHIBIT 2 e - COMMITMEF"" TO PURCHASE OWNEFSHIP SHARE (Non-Pa rticipant) (Date) Public Service Compaay of New Hampshire Post Office Box 330 (1000 Elm Street) Manchester, New Hampshire 03105 Attention: W. C. Tallman, President Gentlemen: The undersigned hereby agrees to acquire a % Ownership Share, in accordance with the Offer dated October 11, 1979, from Public Service Company of New Hampshire, in Seabrook Units Nos. 1 and 2 (the " Units"). It is understood that the amount of said Ownership Share is subject to adjustment in accordance with the terms of the Offer. This agreement is subj ect to the obtaining of all necessary regulatory approvals; and PSNH and the undersigned shall use their best efforts to pursue, obtain and assure the continued validity of such approvals which apply to their respective rights and obligations hereunder. The undersigned is familiar with the Seabrook Joint Ownership Agreement, as amended, and with the Tenth Amendment theretc contemplated by the Offer. Upon the Effective Date (as defined in saf' Tenth Amendment) with respect to the Ownership Share specified above of the undersigned, the undersigned by causing this agreement to be signed by its authorized officer and affixing its corporate seal hereto agrees with you and the other Participants that it shall hereby become a party to the Seabrook Joint Ownership Agreement, subject to all obligations and entitled to all rights as a Participant thereunder to the extent of its Ownership Share. _ (Seal) kithess: By Its 1* 4 s-
Attachment 3 TENTH AMENDMENT TO AGREEMENT FOR JOINT OWNERSHIP, CONSTRUCTION AND OPERATION OF NEW HAMPSHIRE NUCLEAR UNITS This Amendatory Agree =ent made as of the lith day of October, 1979, by and among Public Service Company of New Hampshire (PSNH), The United Illuminating Company, Bangor Hydro-Electric Company (Bangor), Central Maine Power Company (CMP), Central Vermont Public Service Corporation, The Connecticut Light and Power Company, Fitchburg Gas and Electric Light Co=pany, Hudson Light and Power Department (Hudson), Maine Public Service Company, Massachusetts Municipal Wholesale Electric Company (MMWEC), Montaup Electric Company (Montaup), New Bedford Gas and Edison Light Company (NB), New England Power Company, Taunton Municipal Lighting Plant (Taunton), Vermont Electric Cooperative, Inc. and Vermont Electric Power Company, Inc. (the Participants), WITNESSETH THAT: WHEREAS, the Participants are parties to the Agreement for Joint Ownership, Construction and Operation of New Hampshire Nuclear Units made as of May 1, 1973, as heretofore amended by the agreements dated May 24, 1974; June 21, 1974; September 25, 1974; October 25, 1974; January 31, 1975; April 18, 1979; April 25, 1979; and June 8, 1979 (the Agreement); and WHEREAS, the Seventh Amendment to the Agreement will not become ef fective because the conditions set forth in Section 3 thereof have not been and will not be satisfied; and WHERcAS, the Participants desire to confirm the commitments of certain of the Transferees named in said Seventh Amendment and to provide for participation by Additional Transferees and to effect, in accordance e i j 7 O h
...J
with paragraph 29 of the Agree =ent, the amendment to the Agreement
'aereinaf ter set forth; NOW, THEREFORE, the Participants agree as follows:
- 1. Amandment.
The Agreement is hereby amended in the following respect: Paragraph 3.1, p. 3 In lieu of the new paragraphs which would have been inserted had the Seventh Amendment become effective, the following new paragraphs are inserted after the third paragraph:
"Over the Adjustment Periods (as defined belos , the Ownership Share of PSNH shall be reduced and (1) the Ownership Shares of Ba gor, CMP, Hudson, MMWEC, Montaup, NB and Taunton (herein collectively referred to as the ' Initial Transferees')
shall be increased by 1.80142%, 1.0%, 0.01957%, 6.00091%*, 1.0%, 2.17390% and 0.13065%, respectively, and (ii) the Ownership Share of each party which shall become an Additional Transferee as provided in clause (e) hereof shall be increased by the percentage Ownership Share specified by such party pursuant to said clause (e) (the Initial Transforees and Additional Transferees being herein referred to as the 'Transferees' and the percentage increase of each Transferee being herein referred to as its 'New Ownership 5 .re'), as follows:
"(a) That portion of amounts incurred while one or more Adjustment Periods are i effect for costs of the Units which would be applicable to the Ownership Share of PSNH in the ab ance of this provision shall be for all purposes of the Agreement deemed applicable to the Ownership Shares of the Transferees for which such Adjustment Periods are then in effect in the proportion that the New Ownership Share of each such Transferee bears to the aggregate New Ownership Shares sf all Transferees for which Adjustment Periods are then in effect.
"For purposes of this provision, the terms ' cost' or
' costs' shall it.clude the amount invoiced to the Participants, except that in the case of PSNH ' cost' shall be the difference between the amounts invoiced to the Participants and the total amount on which such invoices are based. In all cases, ' costs' shall be considered to be applicable to a Participant's Ownership Share regardless of whether payment of the invoice has been received by PSNH and shall not include any Participant's allowance for funds used during construction or any equivalent thereof.
"The Adjustment Period or Adjustment Periods in effect
*May be slightly more or less, as specified by written notice by MMWEC to PSNH.
4 3
, n, e % ..'(
as to any Transferee shall be the period or periods beginning with the Effective Date with respect to each New Ownership Share of such Transferee and ending on the earlier of (1) in the case of a Transferee having another Ownership Share, when that Share has increased by the amount of its New Ownership Share, or (ii) in the case of each other Transferee, when such Transferee's Ownership Share is equal to its New Ownership Share, or (iii) termination of the Project. If the Effective Date of any Adjustment Period with respect to a New Ownership Share of any Additional Transferee has not occurred by January 1, 1981, such Transferee or PSNH may at any time thereafter, by written notice to such Transferee or PSNH, as the case may be, terminate the proposed acquisition of such Additional Transferee's New Ownership Share to which such Adjustment Period would' apply, in which case such Transferee shall ha~e no further rights or obligatians with respect to such New Ownership Share. Any such termination of a proposed acquisition by an Additional Transferee shall not affect the other acquisitions contemplated herein. '9NH shall promptly notify the Participants and other Tt isferees of any such termination.
"The Effective Date (1) with respect to the New Ownership Shares of the Initial Transferees shall be the last day of the month in which there shall have been received the last of the applicoble approvals specified in Section 3 of the Seventh A=endment, and (ii) with respect to the New Ownership Shares of each Additional Transferee, shall be the last day of the month in which the last of any required regulatory approvals of the type specified in said Section 3 of the Seventh Amendment with respect to the acquisition by such Transferee of its New Ownership Share shall have been received (but not prior to the Effective Date under (1)). Appeals or other requests for review of any of such regulatory approvals shall not stay such Effective Date unless a stay is issued by the court or other body to which the appeal or request for review is directed.
"(b) During any .=djustment Period, the Ownership Share of PSNH and of each of the Transferees shall be that percentage which the aggregate costs then applicable to such Ownership Share under the provisions of this Agreement including the foregoing clause (a) is of the aggregate costs then so applicable to all Participants.
"(c) The obligation of each Transferee to pay any amount specified in the foregoing clause (a) shall be subject to the condition precedent, at the time such payment is required, that PSNH shall have delivered to the Transferee:
(1) an invoice for the amount of such payment, referring to paragraph 3.1 and showing the total costs other-wise applicable to PSNH's share, on which the Transferee's proportion is computed, and stating that the Adjustment Fcriod has not been terminated pursuant to the foregoing clause (a);
,n-j4 -)
a
...J
1
-4_
(ii) a certificate or other instrument in recordable form of PSNH confirming the Transferee's adjusted Ownership Share pursuant to the foregoing clause (b) after giving effect to the invoice specified in the preceding subclause (i); and (iii) such other instruments, certificates, opinions or documents as the Transferee may reasonably request to establish or confirm its interest in the Units, the Property Interests, and related rights and interests in accordance with its adjusted Ownership Share.
" (d) At the time that PSNH requests from a Transferee the first payment pursuant to the foregoing clause (a) inserted by the Tenth Amendment to the Agreement, PSNH shall deliver to such Transferee necessary releases, if any, from all trustees under bond indentures to which PSNH is a party or to which any of its assets or properties is subject, and an opinion of counsel for PSNH in form and substance satisfactory to such Transferee to the effect that the Agreement, as amended by the Tenth Amendment to the Agreement, is the valid, legal, and binding agreement of PSNH and will be effective to establish as to each Transferee the full legal right, free and clear of any liens or security interests of mortgages or security agreements of PSNH, to its proportionate share of the Units, Property Interests, and related rights and interests in accordance with its adjusted Ownership Share, ia accordance with the provisions of the Agreement.
"(e) A Participant may become an Additional Transferee with respect to an increase in its ownership Share by execution and delivery to PSNH of an agreement to such effect, in the ferm attached as Exhibit 1 to the offer dated October 11, 1979, of PSNH with respect to the Units, specifying the percentage Ownership Share constituting such increase. If an Initial Transferee has agreed or shall agree to a further increase in its Ownership Share, such further increase sball be deemed a separate New Ownership Share with respect to which such Transferee shall be deemed an Additional Transferee (and not an Initial Transferee).
"Any other public utility approved by PSNH, whether municipal, cooperative or investor-owned, may become an Additional Transferee by entering into an Agreement with PSNH to such effect in the form attached as Exhibit 2 to the offer dated October 11, 1979, of PSNH with respect to the Units, specifying the percentage Ownership Share it agrees to acquire, and agreeing to become a party to the Agreement and entitled to all rights as a Participant hereunder to the extent of its Ownership Share."
- 2. Applicable Law.
This Amendatory Agreement is made under and shall be governed by the laws of the State of New Hampshire. j4 3 ,,-
. . _a
- 3. Execution in Counterparts.
Any number of counterparts of this Amendatory Agreement may be executed and each shall have the same force and effect as an original and as if all the parties to all of the counterparts had signed the same instrument. 4 Effective Date of this Tenth Amendment. When counterparts of this Amendment have been executed by the Initial Transferees referred to herein and by Participants (in-cluding the Initial Transferees) having Ovnership Shares aggregating at least 80%, this Amendatory Agreement shall become effective in accordance with paragraph 29 of the Agreement. IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be signed by an authorized officer and its respective seal to be affixed hereto on the date indicated but as of the date first above written. Witness: PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE By (Seal) Its Date _ State of New Hampshire County of Hillsborough The foregoing instrument was acknowledged before me this day of October, 1979, by W. C. Tallman, President of Public Service Co=pany of New Hampshire, a New Hampshire corporation, on behalf of the corporation. (Seal) Notary Public My commission expires
. - .o
THE UNITED ILLUMINATING COMPANY By (Seal) Itc Date State of Connecticut County of New Haven The foregoing instrument was acknowledged before me this day of , 1979, by ,
, of The United Illuminating Company, a Connecticut corporation, on behalf of the corporation.
(Seal) BANGOR HYDRO-ELECTRIC COMPAST By (Seal) Its Date State of Maine County of Penobscott The foregoing instrument was acknowledged before me this day of , 1979, by ,
, of Bangor Hydro-Electric Company, a Maine corporation, on behalf of the corporation.
(Seal)
)< .
.q.
- . J
CENTRAL MAINE POWER COMPANY By (Seal) Its Date State of Maine County of Kennebec The foregoing instru=ent was acknowledged before me this day of , 1979, by ,
, of Cen:ral Maine Power Company, a Maine corporation, on behalf of the corporation.
(Seal) CENTRAL VERMONT PUBLIC SERVICE CORPORATION By (Seal) Its Date State of Vermont County of Rutland The foregoing instrument was acknowledged before me this day of , 1979, by ,
, of Central Vermont Public Service Corporation, a Vermont corporation, on behalf of the corporation.
(Seal) o-3
THE CONNECTICUT 'IGHT AND POWER COMPANY By (Seal) Its Date State of Connecticut County of Hartford the foregoing instrument was acknowledged before me this day of , 1979, by ,
, of The Connecticut Light and Power Company, a Connecticut corporation, on behalf of the corporation.
(Seal) FITCHBURG GAS AND ELECTRIC LIGHT COMPANY By _ (Seal) Its Date Coc=onwealth of Massachusetts County of Worcester The foregoing instrument was acknowledged before me this day of , 1979, by ,
, of Fitchburg Gas and Electric Light Company, a Massachusetts corporation, on behalf of the corporation.
(Seal) y< . ,-- a e e
_9 HUDSON LIGHT AND POk'ER DEPARTMENT By (Seal) Its Date Consonwealth of Massachusetts County of Middlesex The foregoing instrument was acknowledged befcre me this day of , 1979, by ,
, of Hudson Light at:d Power Department, an agency of a Massachusetts municipal corporation, on behalf of the corporation.
(Seal) MAINE PUBLIC SERVICE COMPANY By (Seal) Its Date State of Maine County of Aroostook The foregoing instrument was acknowledged before me this day of , 1979, by ,
, of Maine Public Service Company, a Maine corporation, on behalf of the corporation.
(Seal) ie , ,,. I
-a s
~
MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPAhT By (Seal) Its Date Com=onwealth of Massachusetts County of Hampden The foregoing instrument was acknowledged before me this day of , 1979, by ,
, of Massachusetts Municipal Wholesale Electric Company, a Massachusetts corporation, on behalf of the corporation.
(Seal) MONTAUP ELECTRIC COMPAh7 By (Seal) Its Date __ Commonwealth of Massachusetts County of Suffolk The foregoing instru=ent was acknowledged before me this day of , 1979, by ,
, of Montaup Electric Company, a Massachusetts corporation, on behalf of the corporation.
(Seal) w J w
i . NEW BEDFORD CAS AND EDISON LIGHT COMPANY By (Seal) Its Date Commonwealth of Massachusetts County of Middlesex The foregoing instrument was acknowledged before me this day of , 1979, by ,
, of New Bedford Gas and Edison Light Company, a Massachusetts corporation, on behalf of the corporation.
(Seal) NEW ENGI14D POWER COMPANY By (Seal) Its Date
/ .
Commonwealth of Massachusetts County of Worcester The foregoing instrument was acknowledged before me this day of , 1979, by ,
, of New England Power Company, a Massachusetts corporation, on behalf of the corporation.
(Seal) j ,4 j ,,- I . - ~; J
( . TAUNTON MUNICIPAL LIGHTING PLANT By (Seal) Its Date Co=sonwealth of Massachusetts County of Bristol The foregoing instrument was acknowledged before me this day of , 1979, by ,
, of Taunton Municipal Lighting Plant, an agency of a Massachusetts municipal corporation, on behalf of the corporation.
(Seal) VERMONT ELECTRIC COOPERATIVE, INC. By (Seal) Its Date State of Vermont County of Lamo11e The foregoing instrument was acknowledged before me this day of , 1979, by ,
, of Vermont Eleccric Cooperative, Inc. , a Vermont corporation, on behalf of the corporation.
(Seal)
~u (
t
, VERMONT ELECTRIC POWER COMPANY By (Seal)
Its Date State of Vermont County cf Rutland The foregoing instrument was acknowledged before me this day of , 1979, by ,
, of Vermont Electric Power Company, a Vermont corporation, on behalf of the corporation.
(Seal) 3, . , , . s
Applicant: Public Service Company of New Hampshire Neclear Plant Seabrook Unit Nos. 1( 2 , PRO FORMA SOURCES OF FUNDS FOR STSTEM-WIDE CONSTRUCTION EXPENDITURES AND CAP 2TAL 3TRUCTURE DURING PERIOD OF CONSnRUCTION OF SUBJECT NUCLEAR POWER FIANT (Millions of Dollers) Construction Years of Subject Nuclear Power Plant EXTERNAL FINANCING 1979 198v 1981 1982 1983 1984 1985 1986 Common Stock $ 77 $ -
$ 40 $ 20 $ -
Preferred Stock 30 15 20 20 - - 20 20 Long-Tere Debt 85 80 80 60 - 60 40 40 Notes Payable 17 (22) (19) (12) - (25) 8 (4) Other Funde* 11 41 - - - - - - Total External Funde 220 114 121 ad - 35 68 56 INTERNALLY CENERATED CASC Net income 41 63 70 81 88 93 99 107 Less: Preferred Dividends (8) (11) (12) (14) (15) (15) (16) (18) Common Dividends (27) (31) (33) (40) (43) (46) (48) (50) Retained Earnings 6 21 25 27 30 32 35 39 Deferred Taxes 11 17 19 22 37 21 13 19 Investment Tax credit-Def. 10 8 12 14 11 6 6 5 Deprec 8 ation and Amontization 17 19 20 21 36 42 44 44 Change in Working Capital (26) (9' (10) (5) ! 13 (9) (14) Less: AFDC (35) (52) (59) (73) (36) (78)~~~ (35) (43) Total Internal Funds (17) 4 7 6 79 86 54 50 TOTAL FUNDS 203 118 128 94 79 121 122 106 CONSTRUCTION EXPENDITURES Nuclear Power Plants 1 64 23 70 51 31 47 48 56 Other 31 30 32 41 42 52 53 36 Total Const. Exp's. 195 53 102 92 73 99 101 92 Subject Nuclear Power Plant 159 21 10 51 31 47 48 56 OTHER CAPITAL REQUIREMENTS Redemption of Maturing Bonds 5 63 24 - - 16 14 7 Acquisition of Bonds for Sinking Funds ! I I I 6 6 6 6 Miscellaneous Requirements ** (detail) 2 1 1 1 - - I I TOTAL CAPITAL REQUIREMENTS 203 118 128 94 79 121 __, 122 106 CAPITAL STRUCTURE ($ & I) Long-Tera Debt $372 47% $389 46% $443 45% $ 502 45% $ 496 %4% $ 534 44% $ 553 44% $ 581 43%
" Preferred Stock !!4 14 129 15 149 15 167 15 166 15 165 14 182 14 199 15 Common Equity 312 39 332 39 395 40 442 40 471 41 503 42 538 42 576 42 TOTAL 798 100 850 100 987 100 1,Ill 100 1,I33 100 1,202 100 1,273 1155~ 1,356 100
*$11 million advance from participants in 1979 N
$41 million from sale of PSNH share of Pilgrim & Millstone Nuclear Units in 1980; Cash proceeds used to retire First Mortgage Bonds. *
** Capital Stock Expense, other Property & Investments. g; hs Scenario Assumptions: (a) Drawdown of Seabrook Units 1 & 2 from 50% to 38% commencing 3/1/80 3 (b) Sale of Filgrim and Millstone on 3/3/80 is (c) Deley . i Seabrook Unit 2 completion date by 4 years. kg 10/15/79 sq
. 5/1/78 (Amend. No. 39)
I. GENERAL INFORMATION AS TO APPLICANTS A. Background Seabrook Station Units No. 1 and No. 2 are being constructed as part of the regional construction program for generation faci-11 ties for utilities participating in the New England Power Pool and other New England utilities. The Units are being constructed pursuant to an Agreement for Joint Ownership, Construction and Operation of New Hampshire Nuclear Units, dated May 1, 1973 (the
" Joint Ownership Agreement") and will be owned in the same pro-portions by the group of participating New England utilities, each participant owning the same per'centage of both Units.
The original License Application for the Construction Per-mits (filed March 30, 1973) indicated that nine participants were then firmly committed to becomo own'as, collectively of 100% of both Units, and that thirteen other utilities were then potential additional participants which might subsequently ac-quire Ownership Shares by transfer of fractional interests from eight of the committed participants. As noted in the License Application, there were unresolved issues, involving legislative changes and municipal authorization, which affected these addi-tional participants. As of March 30, 1973, the nine committed participants and their Ownership Shares were as follows:
]1 ~{
5/1/78
- (Amend, No. 39)
Participant Ownership Share Public Service Company of New Hampshire 50.0000% The United Illuminating Company 20.0000 Central Maine Power Company 2.5505 The Connecticut Light and Power Company 11.9776 Fitchburg Gas and Electric Light Company .1716 Montaup Electric Company 1.9064 New Bedford Gas and Edison Light Company 1.3539 New England Power Company 8.9430 Vermont Electric Power Company, Inc. 3.0970 100.0000% The th?rteen potential additional participants were: Applicant
' Ownership Share Ashburnham Municipal Light Plant .01195%
Burlington Electric Light Department .22175 Eastern Maine Electric Cooperative, s Inc. . .00256 Holyoke Gas and Electric Department .09946 Hudson Light and Power Department .05780 Hull Municipal Lighting Plant .01345 Marblehead Municipal Light Depart-ment .05565 Middleborough Gas & Electric Department .05598 Middleton Municipal Light Department .02563 New Hampshire Electric Cooperative, Inc. 2.41542 North Attleboroagh Electric Depart-ment .03648 South Norwalk Electric Works .00855 Templeton Municipal Light Plant .03023 3.03491% During the course of the construction permit proceedings, some adjustment of participations occurred: Amendment 28 to 3 .,, ,,n
! .. J
- 5/1/78 (Amend. No. 39) the License Application, dated January 17, 1975, documented the transfer by Vermont Electric Power Company, Inc. of portions of its ownership interest to two other Vermont utilities, Central Vermont Public Service Corporation and Green Mountain Power Corporation; testimony presented during the course of the hearing
( Appl. Direct No.1, post Tr.1177) noted the pending transfer by Green Mountain Power Corporation of its interest to New England Power Company and Amendment No. 36 to the License Appli-cation, dated October, 1975, contained a copy of the Agreement to Transfer Ownership in Seabrook Units between those two com-panies. The latter transfer was actually consummated on Decem-ber 17, 1975, after the hearing record in this proceeding was closed but prior to issuance of the Initial Decision. Therefore, as of July 7, 1976, the date the Construction Permits were issued, the Ownership Shares were as follows: Participant Ownership Share Public Service Company of New Hampshire 50.0000% The United Illuminating Company 20.0000 Central Maine Power Company 2.5505 Central Vermont Public Service Corporation 1.7971 The Connecticut Light and Power Company 11.9776 Fitchburg Gas & Electric Light Company 0.1716 Montaup Electric Company 1.9064 New Bedford Gas & Edison Light Company 1.3539 New En, gland Power Company 10.1103 Vermont Electric Power Company, Inc. 0.1326 100.0000% 1
'~3 a /
5/14 /79
. ( Amend . No . 4 0 )
The firmly committed participants are. parties to the Joint Ownership Agreement (initially filed as Appl. Ex. 1, Amend. 14, Question 3; also attached hereto as Exhibit 1) which sets out their respective rights and obligations, including the obliga-tion under Paragraph 3 thereof to make portions of their owner-ship interests available to the additional participants. Finan-cial information as to both the firmly committed and the additional
~ '
participants was submitted as part of the License Application. But determinations by the Commission Staff (Safety Evaluation Report, pp. 20 et seq.) and the Atomic Safety and Licensing Board (Initial Decision, pp. 23-26, 199) as to the financial qualifica-tions of applicants in the original licensing proceeding were made only with respect to the utilities firmly committed to the s project. By Amendment No. 39, as amplified by Supplement No. 1 thereto, to the License Application, the Applicants requested approval of certain partial transfers of the Construction Per-mits in recognition of certain transfers mandated by Paragraph 3 of the Joint Ownership Agreement and of certain other transfers the participants had agreed to make, such transfers being subject to the jurisdiction of certain state regulatory agencies as well as the Commission. Amendment No. 39 culminated in the issuance of Amendments Nos. 1 and 2 to the Construction Permits authorizing certain transfers of ownership interests which would result in the participants' and their Ownership Shares being as follows:
*'i ,-
..J 5/14/79
. ( Amend . No. 40 )
Participant Ownership Share Public Service Company of New Hampshire 50.00000% The United Illuminating Company 20.00000 New England Power Company 9.95766 Central Maine Power Company 2.54178 Central Vermont Public Service Corporation 1.59096 Fitchburg Gas and Electric Light Company 0.60432 Montaup Electric Company 2.93531 New Bedford Gas and Edison Light Company 4.37370
- Town of. Hudson, Massachusetts Light and Power Department 0.05780 Vermont Electric Cooperative, Inc. 0.41259 Bangor Hydro-Electric Company 0.37249 Taunton Municipal Lighting Plant Commission 0.10034 Massachusetts Municipal Wholesale Electric Company . . 5 59249 Maine Public Service Company 1.46056 100.00000%
The transfers authorized by Amendments Nos. 1 and 2 have only been partially consummated as of the date hereof, primarily because the necessary regulatory proceedings before all state agencies have not yet been completed. B. Proposed Transfers j On March 3, 1979, the Board of Directors of Public Service Company of New Hampshire ("PSCo") directed the officers of PSCo to effect a reduction in PSCo's Ownership Share of the Seabrook Units. Promptly thereafter, a proposal was made to the other joint owners of the project to amend the Joint Ownership Agree-ment to provide that the Ownership Shares of PSCo and the other participants taking part in the adjustment be determined on the basis of the several amounts advanced by then rather than a stated fixed percentage as peccently psicd .:. t..e R at 0;. . . ._ Agreement, such reallocation of ownership interests to be gradually _,I
10/10/79
* (Supp. No. 3 to Amend. No. 40) effected by the assumption of a greater share of ongoing construc-tion costs by certain participants and a corresponding decrease in the contributions by PSCo. As a result of the subsequent negoti-ations, an agreement was reached (in the form of a Seventh Amendment, dated as of April 18, 1979, to the Joint Ownership Agreement) to reallocate a 22% Ownership Share of the Seabrook Units by gradually decreasing PSCo's interest by that amount and correspondingly increasing the interests of other participants as follows:
Additional Licensee Ownership Sharc
- Massachusetts Municipal Wholesale Electric Company (MMWEC) 13.87446%
New Bedford Gas and Edison Light Company 2.17390 Bangor Hydro-Electric Company 1.80142 ' Montaup Electric Company 1.00000 Central Maine Power Company 1.00000 Green Mountain Power Corporation (GMPC) 1.00000 Central Vermont Public Service Corporation (CV) 1.00000
#Taunton Municipal Lighting Plant Commission 0.13065 MTown of Hudson, Massachusetts Light and Power Department 0.01957 22.00000%
Proceedings before state regulatory agencies in Massachusetts, New Hampshire and Vermont to obtain approval of the foregoing re-allocations have been initiated and effectiveness of the Seventh Amendment is conditioned upon obtai.ning such approvals as well as Commission approval of the financial qualifications of the
* . p , n ,, . . c .o.1, 3 - , ., + t ,,,-...q,q o, ,o eo r, , ,a-,,
'00RBRRNAL n,. .w.
failed to obtain its requiuite appruvalu Gr acae u . m i-tions on or before October 1, 1979, then MM'dEC would acquire those interests as well, for a maximum potential increase of 14.02468% for MMWEC. ' '~ 4 '
- i - .6
10/10/79
* (Supp. No. 3 to Amend. No. 40) allottees. (For convenience a composite conformed copy of the Joint Ownership Agreement with amendments to date is attached hereto as Exhibit 1.)
Because MMWEC has been unable to obtain commitments from its constituent members for the full amount subscribed for and because of uncertainties affecting the positions of CV and GMPC, it has become clear that the reallocation contemplated by the Seventh Amendment will not be consummated in that form. Therefore, PSCo has determined upon a two-step approach to the reallocation. First, a Tenth Amendment to the Joint Ownership Agreenent (the proposed form thereof is attached hereto) will be entered into which will provide for a realloca-tion between PSCo and the other participants, on substantially the same basis as set forth in the Seventh Amendment, of the following interests: Additional Licensee Ownership Share Massachusetts Municipal Wholesale Electric Company 6.00091% New Bedford Gas and Edison Light Company 2.17390 Bangor Hydro-Electric Company 1.80142 Montaup Electric Company 1.00000 Central Maine Power Company 1.00000 Taunton Municipal Lighting Plant Commission 0.13065 Town of Hudson, Massachusetts Light and Power Department 0.Cl[57 12.12645% The Adjustment Period relating to such transfers is to become effective as soon as requisite regulatory approvals have xen zbt 1 1:m ..
~
., " .~' o .:' .f' ' -
i
~'~
P00R DDlWL v'=
~
10/10/79
. (Supp. No. 3 to Amend. No. 40) the remaining 10% interest which it desires to divest and accept-ing offerees will become Additional Transferees within the terms of the Tenth Amendment as soon as requisite regulatory approvals have been obtained. A further filing will be made with the Commission with respect to the financial qualifications of such Additional Transferees.
On April 30, 1979, The United Illuminating Company (UI) executed contracts with Central Maine Power Company and Montaup Electric Company to sell a portion of its Ownership Share to each of those participants as follows: Transferee Ownership Share Central Maine Power Company 2.500005 Montaup Electric Company 1.06469 Copies of the sales contracts are included with the financial information with respect to such transferees found in the suc-ceeding sections of this material. These transfers are subj ect to rc;gulatory approval by state regulatory agencies in Connecti-cut, Massachusetts and New Hampshire as well as to Commission approval of the financial qualifications of the transferees. Current financial information with respect to each of the above allottees and transferees, and reflecting such increased participations, is found in the succeeding sections of this material. After consummation of the reallocations presently provided for in the Tenth Amendment and the transfers by UI, the Owner-ship Share of each participant in Scabrook will be as follows:
,, 3 w e
10/10/79
,' (Supp. No. 3 to Amend. No. 40)
Participant Owners' lip Share Public Service Company of New Hampshire 37.87355% The United Illuminating Company 16.43531 Central Maine Power Company 6.04178 Fitchburg Gas and Electric Light Company 0.60432 Montaup Electric Company 5 00000 New England Power Company 9.95766 Central Vermont Public Service Corporation 1.59096 New Bedford Gas & Edison Light Company 6.54760 Town of Hudson, Massachusetts Light and Power Department 0.07737 Vermont Electric Cooperative, Inc. 0.41259 Massachusetts Municipal Wholesale Electric Company 11.59340 Maine Public Service Company 1.46056 Bangor Hydro-Electric Company ' 2.17391 Taunton Municipal Lighting Plant Commission 0.23099 100.00000% s There also remains the possibility that CV and GMPC will decide to consummate each of their proposed acquisitiont of 1% Ownership Shares from PSCo, which would further reduce PSCo's interest and correspondingly increase their interests.
;i 3 J
s CERTIFICATE OF SERVICE I, John A. Ritsher, one of the attorneys for the applicants herein, hereby certify that on October 16, 1979 I made service of the within Supplement No. 3 to Amendment 40 by mailing copies thereof, postage prepaid, first class, to: . Alan S. Rosenthal, Chairman E. Tupper Kinder, Esqu' ire Atomic. Safety and Licensing As'sistant Attorney General Appeal Board , Environmental Protection Division U.S. Nuclear Regulatory Commission Office of the Attorney General Washington, D.C. 20555 208 State House Annex Concord, New Hampshire 03301 Dr. John H. Buck Karin P. Sheldon, Esquire Atomic Safety and Licensing Appeal Board Sheldon Harmon, Roisman & Weiss U.S. Nuclear Regulatory Commission Suite 566 1725 I Street, N.W. Washington, D.C. 20555 . 20006 Washington, D.C. Michael C. Farrar, Esquire Atomic Safety and Licensing Dr. Ernest O. Salo Appeal Board Professor oi- Fisheries Research U.S. Nuclear Regulatory Commission Institute Washington, D.C. 20555 College of Fisheries University of Washington Ivan W. Smith, Esquire Seattle, Washington 98195 Atomic Safety and Licensing
- Board Panel Dr. Kenneth A. 14cCollum U.S. Nuclear Regulatory Commission 1107 West Knapp Street Washingten, D.C. 20555 Stillwater, Oklahoma 74074 .
Robert A. Backus, Esquire Joseph F. Tubridy, Esquire O'Neill Backus Spielman 410.0 Cathedral Avenue, N.W. Washington, D.C. 20016 116 Lowell Street Manchester, New Hampshire 03105 Dr. Marvin M. Mann Laurie Burt, Esquire Atomic Safety and Licensing Assistant Attorney General Board Panel U.S. Nuclear Regulatory Commission One Ashburton Place Boston, Massachusetts 02108 Washington ,- D . C . 20555 Stephen G. Burns, Esq. Office of the Executive Legal Director U.S. Nuclear Regulatory Commission Washington, D.C. 20555 1 t John A. Ritsher 4 , ,.e
- Y}}